January 2012 Archives

Facebook, the largest social media network in the world, may give an initial public offering (I.P.O) as early as next week, reported the New York Times and BBC News Friday.
Facebook is expected to have the largest Internet I.P.O in history at $10 billion. Previously, Google held the record at $1.67 billion offering in 2004, according to the Times.
Mark Zuckerberg and other students at Harvard University founded Facebook in 2004. Zuckerberg has shown hesitation to go public with the company in the past, however he may have no choice. According to an S.E.C rule, any company with 500 or more shareholders is legally obligated to disclose audited financial results within four months after the year it breaks that threshold. According to the Times, many believe Facebook went past that threshold in 2011. If it is true that Facebook has more than 500 shareholders, then legally it would need to disclose all financials by the end of April, 2012.
According to BBC News, it is likely Morgan Stanley will be the lead underwriter for the sale if it moves forward.

Costa Cruises, the company that owns Costa Concordia, the cruise ship that tipped over near the island of Giglio in Italy, offered its uninjured passengers 11,000 euros Friday to compensate for lost luggage and psychological trauma, according to The Huffington Post.
The 11,000 euros, which equals approximately $14,460 in U.S. dollars does not include the additional reimbursements each passenger will receive for ticket refunds and travel costs, which will equal approximately 3,000 euros per customer, according to CNN. In a report to CNN Costa claimed their offer was a higher settlement than current limits provided for by law, and they would not deduct anything that insurance companies may pay out to individuals as well.
"The big advantage that they have is an immediate response, no legal expenses, and they can put this whole thing behind them," said Roberto Corbella, who represented Costa in negotiations with consumer groups, according to The Huffington Post.
Many passengers have declined the offer made by Costa Cruises, however, claiming the 11,000 euros does not cover the psychological distress suffered in the incident.
"If we can reach an agreement, I am willing to agree not to sue, no problem, but not for 11,000 euros. I don't accept this," said Jesus Garcia Heredia to CNN. Heredia was on the cruise ship with his wife.
CNN reports the captain of the Costa Concordia, Francesco Schettino, may face charges of manslaughter, shipwreck and abandoning ship before all passengers were evacuated. Schettino is currently under house arrest.
Franco Gabrielli of Italy's civil protection agency told CNN the removal of 2,400 tons of fuel from the liner's tanks would begin either Saturday afternoon or Sunday.